Seven seeks to terminate multimillion dollar broadcast deal with Cricket Australia

Channel Seven is in search of a courtroom declaration to enable them to terminate a multimillion dollar Test cricket and Big Bash League broadcasting rights deal with Cricket Australia.

Cricket Australia (CA) reacted with astonishment to the transfer from its broadcast companion on Thursday and vowed to vigorously defend its place.

Seven West Media Ltd has filed courtroom proceedings within the federal courtroom of Australia in relation to “multiple quality and standard breaches by CA” of the prevailing $450m settlement.

“The SWM [Seven West Media] proceedings will seek both a court declaration that Seven is entitled to terminate the MRA [media rights agreement] on the basis of material contract breaches by CA which were not remedied, and damages arising out of past breaches,” Seven stated in an announcement.

It is known the courtroom proceedings will begin early subsequent 12 months and the upcoming summer season of cricket is unlikely to be affected, with Seven intent on performing its obligations by way of broadcasting a busy summer season of Test and BBL cricket.

There are two summers remaining on the six-year deal however it’s understood that the BBL is the sticking level for Seven, after the previous two seasons had been disrupted by the Covid-19 pandemic.

“Seven previously obtained preliminary discovery proceedings in the federal court relating to the claims,” Seven stated.

“Seven’s intention is to terminate the MRA, conditional on the federal court granting a declaration that Seven is entitled to do so. Seven has the right to waive this condition. The damages action is not conditional.

“Seven has pursued the informal dispute resolution procedure under the MRA but the procedure failed to resolve the dispute.”

CA defended its protection throughout the 2020-21 and 2021-22 seasons, wherein it broadcast each WBBL and BBL sport, in addition to “highly acclaimed international schedules” amid the challenges the pandemic offered.

“In the circumstances, CA is astonished that Seven has brought this unwarranted action which will be strenuously defended,” CA stated in an announcement.

“CA remains enormously proud of the efforts of the Australian cricket family including players, match officials, sponsors, stadium operators, host governments, staff and volunteers whose hard work, dedication and expertise allowed us to deliver two exceptional cricket seasons in unprecedented circumstances.

“We look forward to another hugely entertaining summer, including hosting the ICC Men’s T20 World Cup as defending champions, welcoming a record six international touring teams to Australia, as well as the eighth and 12th editions of WBBL and BBL respectively.”

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